Data published by the Office for National Statistics (ONS) showed that retail sales rose by 0.5% in July, partially offsetting the June drop (-0.9%, revised from -1.2%) and confirming economists' forecasts.
For the three-month period (through July), sales volumes rose by 0.1% when compared with the three months to April 2024 and by 0.8% when compared with the same period last year.
Meanwhile, in July, retail sales excluding fuel rose by 0.7% after declining by 1.3% in June (revised from -1.5%). Consensus estimates suggested an increase of 0.8%.
The data also showed that, in annual terms, retail sales increased by 1.4% in July, as expected, after a 0.3% decline in June (revised from -0.2%). When compared with their pre-coronavirus pandemic level in February 2020, volumes were down 0.8%.
The ONS said that automotive fuel sales volumes fell by 1.9% in July following an increase of 2.2% in June. Non-food stores sales volumes, the total of department, clothing, household, and other non-food stores, rose by 1.4% after declining by 1.9% in June. Department stores and sports equipment stores reported a boost following summer discounts and sporting events. Non-store retail sales volumes rose by 0.7%, mainly because of a rebound from retailers other than mail order (such as stalls, markets, vending machines and door-to-door sales).
The data also showed the amount spent online, known as online spending values, increased by 2.5% m/m and by 3.6% per annum. The proportion of online sales decreased from 24.5% in June (revised from 27.1%) to 27.8% in July.